Michigan regulators target unlicensed pay day lenders

A Michigan state agency has ordered two unlicensed lenders to stop operating.AP File Photo

LANSING, MI — State regulators recently ordered two online pay day loan companies to stop operating in Michigan because they’re not licensed to do so.

The Michigan Department of Insurance and Financial Services (DIFS) announced on Thursday that it has sent cease and desist letters to AALM Consulting Services (www.multiloansource.com) and DJR Group LLC for unlicensed loan activity.

Company officials could not be reached for comment.

“Making personal loans in this state without the proper authority is illegal,” DIFS Director Kevin Clinton said in a statement. “Consumers are urged to contact our office if they have any questions as to whether or not the person or website providing loans is properly licensed.”

Other states, including Oregon, also have sent similar cease and desist letters to the lenders, which have poor ratings on the Better Business Bureau’s website.

More information on Michigan’s regulations of cash advance or pay day loan operators, also known as “deferred presentment service providers,” can be found online. The state offers an online database of licensed lenders.